chapter 5 intro to organizational structure business management 12 stewart
TRANSCRIPT
Chapter 5Intro to Organizational Structure
Business Management 12
Stewart
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-2Copyright © 2011 Pearson Canada Inc.
Organizational Structure How job tasks are divided, grouped and coordinated
within an organization Organizational Design
A process of developing or changing an organization’s structure
It is comprised of six key elements: (i) work specialization; (ii) departmentalization;
(iii) chain of command; (iv) span of control; (v) centralization and decentralization; (vi) formalization
Defining Organizational Structure
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-3Copyright © 2011 Pearson Canada Inc.
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-4Copyright © 2011 Pearson Canada Inc.
Organizational Structure
Work Specialization (division of labour)The degree to which tasks are divided into
separate jobs Individuals specialize in doing part of a job
rather than the entire job Human diseconomies such as boredom,
fatigue, stress, poor quality, increased absenteeism, and higher turnover can occur from overspecialization
Departmentalization
Functional Grouping jobs by
functions performedProduct
Grouping jobs by product line
Geographical Grouping jobs on the
basis of territory or geography
Process Grouping jobs on
the basis of product or customer flow
Customer Grouping jobs by
type of customer and needs
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-6Copyright © 2011 Pearson Canada Inc.
Exhibit 5-2a Functional Departmentalization
Plant Manager
Manager,Manufacturing
Manager,Human Resources
Manager,Accounting
Manager,Engineering
Manager,Purchasing
+ Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations
+ Coordination within functional area
+ In-depth specialization
– Poor communication across functional areas
– Limited view of organizational goals
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-7Copyright © 2011 Pearson Canada Inc.
Exhibit 5-2b Geographical Departmentalization
Vice Presidentfor Sales
Sales Director,Central Region
Sales Director,Prairies Region
Sales Director,Western Region
Sales Director,Eastern Region
+ More effective and efficient handling of specific regional issues that arise
+ Serve needs of unique geographic markets better
– Duplication of functions
– Can feel isolated from other organizational areas
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-8Copyright © 2011 Pearson Canada Inc.
Exhibit 5-2c Product Departmentalization
+ Allows specialization in particular products and services
+ Managers can become experts in their industry
+ Closer to customers
– Duplication of functions
– Limited view of organizational goals Source: Bombardier Annual Report.
Bombardier, Ltd.
Industrial Equipment Division
Recreational and Utility Vehicles Sector
Mass Transit Sector Rail Products Sector
Rail and Diesel Products Division
Bombardier–Rotax (Gunskirchen)
Recreational Products Division
Logistic Equipment Division
Mass Transit Division
Bombardier–Rotax (Vienna)
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-9Copyright © 2011 Pearson Canada Inc.
Exhibit 5-2d Process Departmentalization
+ More efficient flow of work activities
– Can only be used with certain types of products
PlantSuperintendent
Sawing Department Manager
Planing and Milling Department Manager
Assembling Department Manager
Lacquering and Sanding Department Manager
Finishing Department Manager
Inspection and Shipping Department Manager
Chapter 5, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition 5-10Copyright © 2011 Pearson Canada Inc.
Exhibit 5-2e Customer Departmentalization
+ Customers’ needs and problems can be met by specialists
– Duplication of functions
– Limited view of organizational goals
Directorof Sales
Manager,Wholesale Accounts
Manager,Retail Accounts
Manager,Government Accounts